re: AGIP Mauritania B V Eni: Recommended Cash Off Eni:...

re: AGIP Mauritania B V Eni: Recommended Cash Off Eni: Recommended Cash Offer for British Borneo Oil & Gas
Eni, the Italian oil and natural gas company, and British Borneo Oil & Gas, a UK independent upstream company listed on the London Stock Exchange, announce that they have reached agreement on the terms of a recommended cash offer ("Offer") to acquire the whole of British Borneo's share capital. The Offer will be made by Lazard on behalf of Agip Ventures, a wholly-owned subsidiary of Eni.

The Offer is being made at 70 pence in cash for each British Borneo Share, valuing the whole of the issued share capital of British Borneo at GBP 263 million. Taken into account British Borneo's net debt of GBP 525 million at 31 December, 1999, the total financial commitment of Agip Ventures, assuming the successful acceptance of the Offer, is of GBP 788 million.

The Offer represents a premium of 40% to the London Stock Exchange Closing Price of 50 pence per share on 28 March, 2000.

British Borneo is one of UK's oldest independent oil companies. Until 1994, British Borneo operated mainly in the UK continental shelf in the North Sea and subsequently focussed also on deep-water drilling in the Gulf of Mexico. In 1998 British Borneo merged with Hardy Oil & Gas, another UK independent oil company, thus strengthening its position in the UK and entering the Australian market as well as some emerging markets in Asia (Pakistan and Timor Gap, an area between Australia and Indonesia). More recently, British Borneo has acquired stakes in deep-water exploration permits in the UK, Brazil and Mauritania.

At 31 December, 1999, British Borneo had proven and probable reserves of 262 million barrels of oil equivalent (boe). In 1999 British Borneo's daily production was of 43,300 boe and it is forecast to reach approximately 60-80,000 boe in the short-term.

In 1999 British Borneo registered a net income of GBP 17 million versus a loss of GBP 81 million in 1998. Net revenues in 1999 totaled GBP 133 million, compared to GBP 62 million in the previous year.

Agip Ventures has received irrevocable undertakings from the Directors of British Borneo to accept the Offer in respect of a total of 832,276 British Borneo Shares, representing 0.2 % of the company's issued share capital.

In addition, Prudential plc. and other institutional investors, owning or controlling approximately 19.4% of the company's issued capital, have indicated their intention to support the Offer.

Vittorio Mincato, Chief Executive Officer of Eni, said: "The acquisition of British Borneo contributes to Eni's hydrocarbon production growth target. In fact, it is an opportunity to acquire producing assets in the Gulf of Mexico with operatorship, where Eni will double its current production. In the British North Sea offshore, Eni will increase its production and benefit from operating synergies. Furthermore, the acquisition will strengthen Eni's position in Australia and Brazil and establish a new presence in some of the emerging markets in Asia."

Sir Bob Reid, Chairman of British Borneo, said: "The offer represents a 40% enhancement on the share price as at close of business on 28 March, 2000. The asset portfolio which forms the core of the business is the attraction which has made the transaction possible and is a tribute to the enterprise and commitment of the management and staff of the company."

The Offer is not being made in or into the United States of America, Canada, Japan or Australia and this press release is not an extension of the Offer in the United States of America, Canada, Japan or Australia.

Rome, 29 March, 2000